Radio frequency identification (rfid) system for manufacturing, distribution and retailing of keys

ABSTRACT

An automated inventory control system including a merchandising rack for displaying one or more products that is located at a retail outlet store is disclosed herein. The merchandising rack receives or displays one or more products having associated electronic identification devices secured thereto. An electronic reading device automatically scans all of the one or more electronic identification devices and determines data related to the products without the need for a manual initiating a scan for each of the one or more electronic identification devices. A host computing device receives instructions to initiate a scan from the receiver, initiates the scan by, and receives the data from, an electronic reading device and causes data to be transmitted to a computer under the control of a distributor, supplier or manufacturer.

RELATED APPLICATIONS

This non-provisional patent application is a continuation of and claimsthe benefits of, and priority to, U.S. patent application Ser. No.12/965,319 filed on Dec. 10, 2010 and titled “Radio FrequencyIdentification (RFID) System for Manufacturing, Distributing andRetailing of Keys.” patent application Ser. No. 12/965,319 is acontinuation of and claims the benefits of, and priority to, U.S. patentapplication Ser. No. 11/224,194 filed on Sep. 12, 2005, and U.S.Provisional Patent Application No. 60/609,188, filed on Sep. 10, 2004,both of which are entitled “Radio Frequency Identification (RFID) Systemfor Manufacturing, Distributing and Retailing of Keys.” Thespecifications of each of these applications are hereby incorporated intheir entirety.

FIELD OF INVENTION

This invention relates generally to the application of Radio FrequencyIdentification (“RFID”) technology to the key industry or similarindustries with relatively fungible, yet nuanced products. Specifically,the invention relates to systems that include the use of RFID tags toidentify a key or a group of keys for purposes of gaining efficiency andaccuracy in the supply chain.

BACKGROUND

The identification of objects that are relatively fungible, but possessminute yet important nuances or details, can be a difficult, tedious andtime consuming. As will be readily recognized by those familiar withsuch enterprises, a failure to accurately identify such objects withregularity can have unintended or undesirable consequences.

This difficulty of identification causes additional difficulties whencounting, inventorying, distributing and retailing such fungibleobjects. These difficulties may occur throughout the entire supply chainfor these objects or products—from manufacturing through distributionand into retailing. The key industry is one such industry in which therelatively fungible nature of the products leads to difficulties inidentification, counting, inventorying, distributing, and retailing.

The key industry supply chain includes many “nodes” at which key or keyblanks change hands. For example, keys are handled by manufacturers,truckers, customs agents, shippers, wholesalers, and retailers, many ofwhich may be located overseas and often handle hundreds, if notthousands, of types of keys or key blanks Many of these keys or keyblanks are not readily distinguishable from other similar keys or keyblanks, which adds complexity and cost to the supply chain. At each nodein the supply chain, many administrative tasks must be completed, suchas inventorying and counting the keys in a shipment. At each node,transmittal and bill of lading documents must be reviewed and created.Currently, these processes are accomplished via expensive, inaccuratemanual counts and human visual reviews. The current processes may resultin higher than required safety stocks, stock outs, lost sales, miscutkeys and other unnecessary expenses.

Utility patent application Ser. No. 10/633,933, entitled OBJECTIDENTIFICATION SYSTEM, which is incorporated herein in full and attachedhereto as Appendix A, presents solutions for some common issues thatarise in the duplication of certain fungible keys at retail locations inthe supply chain. However, there still remains a need to developadditional solutions for duplication issues and for the many otherissues presented by the movement of products with a fungible nature,such as keys, through the supply chain.

SUMMARY

An automated inventory control system is disclosed herein. An embodimentof an automated inventory control system may include a merchandisingrack for displaying one or more products that is located at a retailoutlet store. The merchandising rack is set up to receive or display oneor more products having associated electronic identification devicessecured thereto. The system includes an associated electronic readingdevice. The electronic reading device is configured to automaticallyscan all of the one or more electronic identification devices anddetermine data related to the products displayed on the merchandisingrack, without the need for a manual initiation of a scan for each of theone or more electronic identification devices. The system includes ahost computing device having a processer in electronic communicationwith the electronic reading device; a receiver and a transmitter. Thehost computing device is configured to receive instructions to initiatea scan from the receiver, initiate the scan by and receive the data fromthe electronic reading device, and to transmit the data through thetransmitter to a computer under the control of a distributor, supplieror manufacturer.

DESCRIPTION OF DRAWINGS

FIG. 1 is a chart illustrating a supply chain for the key industry;

FIG. 2 an exploded view of a RFID tag attached to a key by a one-sidedadhesive label;

FIG. 3 is a perspective view of a RFID tag attached to a key body;

FIG. 4 is a perspective view of a RFID tag attached to a head of a key;

FIG. 5 is a perspective view of a RFID tag incorporated into the head ofa key;

FIG. 6 is a perspective view of a RFID tag attached to a sheath for akey;

FIG. 7 is a perspective view of a RFID tag incorporated into a cylinder,which is attached to a key;

FIG. 8 is a perspective view of a RFID-enabled merchandising rack;

FIG. 9 is a process chart illustrating a method for restocking aRFID-enabled merchandising rack;

FIG. 10 is a process chart illustrating a method for choosing a properkey blank to make a duplicate key;

FIG. 11 is a process chart illustrating a method for determining theinventory of keys in a RFID-enabled merchandising rack;

FIG. 12 is a process chart illustrating a method for using anRFID-enabled key cutter;

FIG. 13 is a process chart illustrating a method for using anRFID-enabled key cutter.

DETAILED DESCRIPTION

This application will present Radio Frequency Identification (RFID)systems designed to address the fungibility difficulties that occurthroughout the key industry supply chain, including key duplication, andto gain heretofore unattainable efficiencies by incorporating RFIDtechnology into the manufacture, distribution, and retail sale of keysand key blanks.

RFID systems are capable of identifying, counting, and tracking RFIDtagged keys through the use of solid state silicon chips and radiowaves. RFID has numerous advantages versus existing methods andtechnologies currently used in the key industry. Current methods includemanual counting, mechanical counting, and universal product code (UPC)systems. The automated nature of RFID reduces labor, increases accuracyand provides higher quality information for identifying, counting, andtracking keys. Custom Software can be part of an RFID system toevaluate, utilize, and manipulate information gathered to reduce costsand increase accuracy and efficiency throughout the key supply chain.For example, software can automate the creation of transmittal and billof lading, can reduce inventory expenses by reducing safety stocksthroughout the supply chain, and can increase sales by eliminating stockouts throughout the key supply chain. Automatic identification by RFIDalso facilitates other transactions, for example, proper key blankselection for cutting a duplicate key and identifying inventory lossesor shrinkage.

An RFID system can be comprised of a variety of components and can beconfigured in a variety of ways. Depending on the purpose served by anRFID system, the system may comprise combinations of the followinghardware: RFID tags attached to individual products, shippingcontainers, and pallets; RFID readers, attached or incorporated intomerchandising display racks, loading and unloading equipment, shippingvehicles, and warehousing locations; RFID multiplexers, attached orincorporated into merchandising racks, loading and unloading equipment,shipping vehicles, and warehousing locations; handheld or portable RFIDreaders; computer hardware, such as computers, servers, monitors, andprinters; telecommunications hardware, such as modems and routers; andkey cutting machines. Also incorporated into RFID systems can besoftware components, including: RFID reader software or middleware;database software; telecommunications software; network and internetintegration software; and user interface or graphic interface software.

Those skilled in the art will readily recognize that RFID systemsincluded in this application can be comprised of any combination ofhardware and software components detailed in this application. Inaddition, those skilled in the art will readily appreciate thatcombinations of hardware and software components that are similar orequivalent to those described in this application are also included inthis application.

The present invention discloses methods of utilizing RFID systems toincrease accuracy and efficiency in a supply chain used in the keyindustry. FIG. 1 shows nodes of a typical supply chain 10 used for thekey industry. The illustration of FIG. 1 is exemplary only and a supplychain 10 can comprise any combination of the nodes shown and could, inaddition, include nodes that are not illustrated in FIG. 1. In theexemplary illustration, a key or key blank originates at a keymanufacturer 12. Keys leave the manufacturing facility, normally via atrucker 14, and may have to pass through a customs inspection 16 if thekey is passing through an international or state boarder. The keys maythen be shipped 18 and re-inspected by customs 16 upon reaching adestination country. The keys may then be moved by a trucker 14 to asupplier, distributor, or wholesaler 20. The keys will then be sent aretailer 22, who will sell the keys or key blanks to the end user 24.

In order to efficiently utilize an RFID system to track keys movingthrough a supply chain 10, RFID tags can be incorporated or attached tokeys, key blanks, prefabricated keys, original keys, and the like. Forthe purposes of this application, the terms “key” and “key blank” willinclude keys, key blanks, prefabricated keys, original keys, groups ofkeys, and the like. Tags can be attached to or incorporated into keys ina variety of ways.

Referring to FIG. 2, one embodiment of an RFID tag 30 attached to a key32 is illustrated. FIG. 2 is an exploded view showing a key 32, an RFIDtag 30, and a one-sided adhesive UPC label 34. A RFID tag 30 can beattached to the adhesive side of the UPC label 34, which is thenattached to the key 32. The use of a UPC one-sided label 34 is forconvenience, as UPC labels are commonly used in the key industry toidentify keys. As the key market adjusts to the introduction of RFIDtechnology, there will be a period of overlap where the current UPCsystems will coexist with novel RFID systems. This embodiment accountsfor that overlap. An alternative embodiment is to use a blank one-sidedadhesive label to secure a tag to a key. This embodiment may be morepractical when keys pass through a supply chain 10 that has fullyadopted RFID technology.

FIG. 3 illustrates another embodiment of a tag 30 attached to a key 32.In this embodiment, the RFID tag 30 is affixed directly to the key 32itself. A tag 30 can be affixed either permanently or in a manner thatallows the tag 30 to be removed at any point in the supply chain 10.Optionally, the affixing of the RFID tag 30 can be limited to the head36 of the key 32, as illustrated in FIG. 4. This area of the key can bedesigned to provide ample room for the placement of an RFID tag 30. Inaddition, the head 36 of the key 32 is not affected by the cutting ofteeth into a key 32 and would be more likely left undisturbed by theprocess of cutting a replacement key.

In another embodiment, only the silicon chip portion of an RFID tag isaffixed directly to a metal key. In this embodiment, the key itselfserves as the antenna by which the information is relayed to an RFIDreader. The placement of the chip could be anywhere on the key thatallows for contact with a metal portion of the key.

FIG. 5 illustrates an alternative embodiment of the invention where anRFID tag 30 is incorporated directly into the key 32. One optionalmethod of achieving this is to make all, or a portion, of the key 32 outof a plastic material. It is common for keys to be manufactured with aplastic head 38 and a metal body 40, which extends from the plastic head38. In addition, with advancements in thermal set plastics and otherpolymer technologies, it is practical to manufacture an entire key 32out of a plastic material. An RFID tag 30 can be incorporated into a key32 by embedding the tag 30 in a plastic portion of the key during themolding process used to manufacture the plastic portion of the key. FIG.5 illustrates an embodiment where an RFID tag 30 is incorporated intothe plastic head 38 of a key 32.

FIG. 6 illustrates an alternative embodiment of the invention, where theRFID tag 30 is permanently incorporated into a plastic sheath or sleeve42 by injection molding or other means. The key 32 can be convenientlyinserted or removed from the sheath or sleeve 42. The RFID tag 30residing in the sheath or sleeve 42 can be reprogrammed and reused uponremoval of the key 32. In an alternative embodiment, a RFID tag 30 canbe attached or adhered to a surface of the sheath or sleeve 42.

FIG. 7 illustrates another alternative embodiment, where the RFID tag 30is permanently incorporated into a member 44. The member 44 may be anyshape, for instance a disc, cube, or cylinder and may be manufacturedout of plastic by injection molding or other means. The member 44, withthe incorporated RFID tag 30, can be attached to the key 32 by means ofchain, strap or other ligament 46 through a hole 48 in the head 38 ofthe key 32. Because RFID tags 30 can be relatively expensive, the tag 30attached to the key 32 can be reused or recycled after the key 32 isultimately sold to the consumer. In an alternative embodiment, an RFIDtag 30 can be attached to adhered to a surface of the member.

In addition to using RFID tags that are attaching or affixing directlyto keys, an RFID system may utilize RFID tags that are attached oraffixed to a container or multiple containers holding numerous keys.Such a container could hold a “manufactured lot” or “keys in bulk.” Theinformation stored on the RFID tag can contain information that isgeneral to the keys in the container, such as number and type of keys orwho manufactured the keys.

Once an RFID tag 30 is attached to a key 32 or a container of keys,information regarding the keys 32 or key lot can be stored or “written”onto the tag 30. This information can be retrieved using RFID readers.RFID readers transmit and receive RF signals and can gather informationstored on RFID tags 30. A RFID reader can also receive and respond tocommands from a host computer and transfer data gathered from RFID tags30 to the host computer. There are various types of RFID readers. FixedRFID readers can be permanently affixed to stationery objects such aswalls, or mounted on stands or portals. Tunnel readers can be mounted onconveyors. Mobile readers can be mounted on forklifts or pickers. Handheld readers provide portability and close range. The selection of areader depends on the demands of a specific key supply chain node.

RFID software can be utilized for many different purposes in RFIDsystems. Reader software or middleware can be responsible for RFIDreader configuration and administration, data filtering and eventmanagement via business rules written specifically for each node in asupply chain 10. Network and web integration software can be responsiblefor routing gathered data to the correct application and correct node inthe supply chain 10, for guaranteeing delivery and for interfacing withapplications. Application software can be responsible for creating adatabase for tracking and counting key inventory by location.

User interface software can generate a graphical dash board thatsupports an RFID system user in making timely business decisions basedon the information displayed, such as type of keys, by revealing thestock keeping unit (“SKU”), and location and number of specific keysregarding the disposition of inventories across the key supply chain 10.Decisions made based on displayed information include increasing ordecreasing the rate of production for specific keys, decreasing orincreasing safety stock levels at any node, restocking a retaillocation, holding a sale to decrease overstock inventory and divertinginventory from one location to another. The system could be configuredto notify the system user of the need to take action or to actuallyperform the action required according to a set of predetermined businessrules. Thus, the system may automatically restock keys or key blanks ata given location but not at another by electronically ordering only thenecessary items at the necessary locations. Furthermore, the userinterface software may provide this information on a local store basis,regional basis, or by national store brand. Additional insights can begained from near real time inventory tracking, include identification ofstores and shifts at which significant trends or cycles are taking placeor in which shrinkage occurs. These insights can be used to takeappropriate action to maximize sales and minimize losses. Furthermore,trends and projections from historical data can be plotted on graphs andevaluated through “what if” scenarios to determine the optimal response.All of these rules, decisions, and methods can be based on data gatheredby the RFID reader or combinations of RFID readers that are used totrack and gather information from the key RFID tags 30.

FIG. 8 illustrates an element that can be incorporated into an RFIDsystem to increase efficiency and accuracy in the retail portion 22 ofthe supply chain 10, an RFID-enabled merchandising rack 50. This rack 50is disclosed in U.S. patent application Ser. No. 10/633,933, as part ofa key identification system (“KID system”), which is attached hereto asAppendix A. This rack 50 can be utilized in retail facilities to storekeys and key blanks 32. The rack 50 can facilitate organizing anddisplaying the keys 32. FIG. 8 illustrates keys 32 displayed on spindlesor pegs 52. In an alternative embodiment, keys 32 can be displayed inbins. Bins can be used for key blanks kept in bulk quantities due totheir status as “fast movers.”

In the embodiment illustrated in FIG. 8, the rack 50 can utilize one ormore RFID readers and a number of multiplexed antennas. In analternative embodiment, these antennas may serve as the spindle or peg52 upon which the keys 32 are stored and displayed. Each antenna,similar to typical readers, creates a separate read zone of radiofrequency energy which reads information from any RFID tagged key 32 inor entering into the read zone. Multi-colored light emitting diodes(LED's) 54 may be located above the spindles 52 (as shown in FIG. 8) orat the end of the spindles 52 to serve as visual indicators to beenergized based on circumstance.

For an embodiment of a RFID-enabled merchandising rack that stores anddisplays bulk key and key blanks 32 in bins, the rack may utilize one ormore RFID readers, one or more antennas that may be multiplexed and adevice for measuring the weight of keys 32 stored in each bin. Thenumber of keys in each bin is estimated by dividing the total weight ofthe keys 32 in a bin by the weight of a single key 32 of the type in thebin.

There are many radio frequencies that can be utilized by RFID systemsused in a supply chain 10. These frequencies include, but are notlimited to, low frequency (approximately 125-135 KHz), high frequency(approximately 13.56 MHz) and ultra high frequency (approximately860-930 MHz). The preferred mode for the RFID systems and for theRFID-enabled merchandising rack 50 is 13.56 MHz. It provides the bestcompromise between RFID tag 30 cost and ability to provide distinct andappropriate read zones for the RFID-enabled merchandising rack 50.

In an RFID system, the RFID-enabled merchandising rack 50 maycommunicate with other components of the system. For instance, the rack50 can communicate with an RFID reader, which then communicates with ahost computer. This may allow inventory and other data to be used by thesystem to make decisions through application logic or allow a user ofthe system to make decisions based on display information shown througha user interface. There are multiple methods for establishingcommunication between the components of a RFID system. These methodsinclude, but are not limited to, a dialer connecting to a hard-wiredtelephone line, a cell phone connecting to a network, and through alocal area network (LAN) or wireless local area network (WLAN).

A communication interface between a host computer and a system user canbe a vital element in an RFID system. The communication of informationor data to a system user can be converted to actionable information onwhich business decisions are made. The actionable information canincludes graphic and numerical representations of inventory at eachstore location, each region of the country, or each distributionfacility. The user interface can represent this information in graphic,tabular and numeric form by time period. Typically, only a sale shouldcause a decrease in store level inventory; therefore, it is valuable tocompare the decrease in inventory to point of sale (“POS”) data toanalyze if a shrinkage problem exists in the supply chain 10. Inaddition, the user interface can also represents information in graphic,tabular and numeric form by time period for each truck shipment, eachtrucking region, each shipment on a ship, each shipment on a shippingline and each manufacturer.

An RFID system that utilizes an RFID-enabled merchandizing rack 50 canbe used in many ways to gain efficiency and accuracy in a supply chain.One example is to use an RFID system when restocking a RFID-enabledmerchandising rack 50 in a retail environment. FIG. 9 shows a method ofrestocking a merchandising rack 50. When a new shipment of keys 32 isreceived 60, a stock clerk picks up individual keys for evaluation andplacement on individual spindles 52. Currently, the accuracy of therestocking relies on the retail clerk's eyes, mind and hands. Thisextremely repetitive set of actions provides many opportunities forerror. With the RFID-enabled merchandising rack 50, the retail clerkplaces a key 32 with an RFID tag 30 in the read zone of an RFID reader62. The RFID reader reads information 64 from the attached tag 32 andqueries 66 a database located on a host computer. The host computerreturns information identifying the proper spindle 54 or bin on whichthe key 32 should be placed 68. The host computer sends a command to therack 50 to energize 70 the LED 54 that corresponds with the correctspindle 52 or bin. The clerk then placed 72 the key 32 on the properspindle or in the proper bin. Alternatively, the process may continue sothat when the key bearing the RFID tag enters the appropriate read zonethe LED 54 is again energized or an audible noise is produced indicatingthat the key blank 32 has been put on the correct spindle 52 or in theproper bin. If the key 32 enters the wrong read zone, an LED or audiblenoise is produced indicating that the key has been put on the wrongspindle or in the wrong bin. In addition, the date and time the key 32was stored or displayed can be recorded by the RFID system and the storeinventory and accounts payable accounts automatically updated. Inaddition, the identity of the stocking clerk can also be captured if heor she is wearing or possesses a RFID identity tag which passes througha read zone.

The RFID system allows each retail location the freedom to determine onwhich spindle to stock each type of key. The system does not requireevery store to stock a particular key or SKU number at the samepredetermined location as all others stores. This is valuable becausedifferent stores and different geographies have preferences fordifferent makes and types of keys and an RFID system with anRFID-enabled merchandising rack facilitates this choice. As a result,the rack allows for improved utilization of the rack space by eachindividual store location.

FIG. 10 illustrates a method for selecting key blanks for correctlyproducing duplicate keys. When a retail customer seeks to duplicate anoriginal key, the selection of the proper key blank is critical. Theoriginal key is placed in the read zone of an RFID reader 80 in anattempt to read information from its RFID tag. If information can beread 82 from the original key an accurate identification can be madeautomatically. The reader can relay the information to a host computer84, which can direct the merchandising rack 50 to energize the properLED 86 indicating the spindle on which the key blank that matches theoriginal is located. If the original does not contain an RFID tag or ifthe RFID tag cannot be read by the reader 88, then the user can utilizea KID system 90 to identify the proper key blank. After the KID systemhas identified the proper blank for selection, the host computer cansend a signal to the merchandising rack 50 to energize the LED 86 thatcorresponds to the proper spindle.

Once the user has selected and removed a key blank 32 from the indicatedspindle 92, the reader can read the RFID tag of the key blank that hasbeen selected to confirm that the proper key has been selected 94. Ifthe correct key has been selected and removed from the rack 50, an LEDon the merchandising rack 50 can be energized or an audible sound can beproduced to indicate success. If the wrong key has been removed, anotherLED on the merchandising rack 50 can be energized or a different audiblesound can be produced to indicate that the wrong key blank has beenselected. Alternatively, when the user has selected and removed the keyblank 32 from the indicated spindle 92, the reader can be triggered toinitiate an inventory. The inventory of the spindle with the removed keywill be decremented by one. If the identity of the decremented SKUmatches the identity of the original key, then the proper key has beenselected and an LED can be energized or audible sound produced to notifythe user. Conversely, if the wrong key blank has been selected, an LEDcan be energized or audible sound produced to notify the user ofimproper selection.

FIG. 11 illustrates a method for real time or near real time inventoryrecording and shrinkage tracking and prevention. Periodically, aninventory requirement may be performed in order to determine actualinventory levels. Actual inventory levels can be compared to expectedinventory levels to determine if inventory has been lost or stolen. Inaddition, actual inventory levels can be compared to business rules todetermine if more inventory should be ordered or if existing ordersshould be cancelled. Determination of actual inventory begins with theinitiation of an inventory inquiry 100. An inventory inquiry can beinitiated by a system user or can be initiated by the host computer orRFID reader processing an automated rule. If keys are stored 102 onspindles 52 on a merchandizing rack 50, RFID readers on the rack 50 canbe initiated 104 to inventory the rack 50. RFID readers will read alltags 30 that are within read zones and calculate an inventory 110.Alternatively if the keys are stored and displayed in bulk 106, all thebins can be weighed 108 and number of keys calculated 110.

Inventory inquiries may be automated to occur periodically or asrequested by a user through a user interface. The host computer mayrequest the inventory data or the data may be filtered by the middlewareused by the readers and only communicated to the host computer if theinventory has changed in some fashion. In this way, real time or nearreal time inventory from every merchandising rack can be communicated toa host computer to be acted upon by automated business logic 112 or forincorporation into the information display on a user interface 114.

FIGS. 12 and 13 illustrate methods for using an RFID system with anRFID-enabled key cutter. The use of such a cutter can prevent miscuttingof key blanks and thus help eliminate the waste and frustration thataccompanies the cutting and attempted use of miscut key blanks. When akey blank has been selected for cutting, it is placed into the jaws of akey cutter for holding during the cutting process. The jaws of the keycutter are set up to receive the key blank and hold it in properposition for cutting. Similarly, the original key (i.e. the one to beduplicated) is placed into a similar pair of jaws so it can be held inproper position for tracing.

As shown in FIG. 12, an RFID reader reads the RFID tag of the key blank120 and communicates the key blank's identity to the key cutter 122. Thecutter will automatically set up its jaws to accept the key blank andthe original key 124. If the original fits into the jaw configuration asset up 126, the user knows the correct key blank may have been chosen128. If the original does not match the jaw configuration 130, the userknows that wrong key blank may have been selected 132 and that toproceed with cutting might result in a miscut.

As shown in FIG. 13, a manual mode is shown. In this mode, the blank keyis read by a reader 120 and jaw settings are displayed via LED or othervisual means 134 to instruct the user to set up the jaws for both thekey blank and original key. The user than manually sets up the jaws 136.Again, if the original does not match the jaw configuration as set up130, the user knows the wrong key blank may have been selected 132 andthat to proceed with cutting may result in a miscut. If the original keyfits into the jaw configuration 126, the blank key was properly selected128.

It should be noted that the RFID reader used for the RFID-enabled keycutter may be the same reader and antenna that are part of theRFID-enabled merchandising rack or, alternatively, the reader may bepart of the merchandising rack and the antenna part of the key cutteror, alternatively, both the reader and antenna may be part of the keycutter.

As has been discussed previously, RFID systems can be utilized toachieve efficiency and accuracy throughout the supply chain 10. Once aRFID tag 30 is incorporated or attached to each key 32, the RFID tag 30and the information it holds can be utilized to achieve improvements inaccuracy and efficiency. As illustrated in FIG. 1, a supply chain caninclude original manufacturers 12, carriers who move the product 14, 18,customs officials that inspect the product 16, suppliers anddistributors 20, retailers 22, and end users 24. Increases in accuracyand efficiency can be gained by providing easy and convenient access toinformation concerning keys or groups of keys 32 stored on RFID tags 30at each nodes of a supply chain 10 and utilizing that information inmaking business decisions.

It should be noted that the RFID tags 30 can be attached to the keys orkey blanks 32 at many points in a supply chain 10; however, applying thetag 32 at the point of manufacturing offers the most downstream benefit.

The key industry supply chain 10 begins in the manufacturing facility12, where original keys, prefabricated keys, and replacement keys 32 areproduced from raw materials. Preferably, a step in the manufacturingprocess is the incorporation or attachment of a RFID tag 30 to the key32. Once the key 32 is fabricated at the manufacturing facility 12,several types of useful information can be written to the RFID tag 30for use later in the supply chain 10. Such information includes, forexample, key type, lot number, name of manufacturer, and manufacturingdate. This information can also be helpful to the manufacturer by beingused to prepare keys and key lots 32 for packaging and shipping. Thekeys 32 are typically packed in boxes and loaded onto pallets forshipping. As the keys 32 are being loaded into boxes and then ontopallets, the individual RFID tags 30 can be read to insure that theproper quantity and type of keys are loaded into each box or onto eachpallet. RFID tags 30 can also be affixed to each box and to each pallet.Useful information can be written to these tags 30, such as, boxquantity, pallet quantity, originating address, destination address,shipment date, and employee identification. This information can laterbe used by the manufacturer to assemble products for final shipment andinsure that orders are accurately fulfilled. A reading of the assembledproducts by a reader can be communicated to a host computer and can beused to produce a bill of lading for use with the shipment.

When an order of keys 32 leaves a manufacturing facility 12, it is oftenhandled and transported to a destination by a cargo carrier 14, 18. Itis advantageous for the carrier to confirm that the goods beingtransported match the order and the bill of lading provided by themanufacturer. The carrier can utilize a reader to establish that thequantity and type of keys that are being transferred are correct andaccurate. The capabilities of RFID technology make this check quick andeasy. Once the proper quantity and product is confirmed, the carrier canwrite further useful information to the RFID tag 30, such as receivingdate, shipment date, and identity of the worker accepting the shipment.

At many points during shipping, the goods may have to be inspected bynational or state authorities 16. Inspectors can confirm the quantityand type of goods by reading the RFID tags 30 on the keys, boxes, andpallets, which can be compared to the bill of lading. This actionreduces the time needed to perform standard inspections. Once theinspection is complete, the inspector can write information to the RFIDtags 30, such as inspection date, inspection location, and inspector'sidentity.

The shipping process 14, 18 may occur several times in the supply chain10. Keys 32, such as any retail commodity, can be handled by manymiddlemen before reaching the final retailer 22. These middlemeninclude, for example, suppliers, distributors, wholesalers, andconsolidators 20. These types of organizations can confirm the detailsof an arriving shipment by reading the information on the RFID tags 30on the keys, boxes, and pallets and comparing it to the information onthe bill of lading. This check can insure that no products were lost orstolen during shipment. Once the RFID tag 30 readings confirm theaccuracy of the shipment, the information on the tags 30 can be used toappropriately stock or repackage the keys, update inventory records, andreconcile accounts receivable. Further useful information can then bewritten to the tags, such as receiving date, storage location, andworkers identify. If the supplier choices to divide the shipment orconsolidate it with other goods, the information on the tags 30 can bewritten or rewritten to correctly identify the quantity, location, andother critical information.

When a supplier, distributor, or other similar organization 20 isprepared to ship an order of keys 32 to a retailer or a middleman, itcan utilize the same methods manufactures use when shipping products.The supplier or distributor can write shipment information to tags 32located on each key, each box, and each pallet. This informationincludes origination address, destination address, retailer specificserial numbers, and shipment dates. The shipment carrier can utilize theRFID tags 30 in the same manner as described above for carriers thatdeal directly with the manufacturer.

Once a shipment arrives at a retailer 22 the RFID tags 30 can be used ina variety of ways to increase efficiency and accuracy. Upon arrival, theretailer 22 can read the RFID tags 30 to insure that the proper productsand quantities are present and can add information to the tags 30 bywriting a receiving date, along with the identity of the employeeprocessing the shipment. When stocking the keys 32 at a merchandizingcenter, the RFID tags 30 can be read to determine the proper stockinglocation for each key or lot 32 and that location information can bewritten to the tag 30. General readings of the inventory can providemany benefits. Continuous readings can provide real time inventory,which can be proactively forwarded to suppliers and other businesspartners. Periodic readings can be made of the inventory to insure thatno improper removal or theft has occurred since the last reading. Inaddition, specific readings can be conducted to find the location of aspecific key or key lot.

On the retail floor the RFID tags 30 can be utilized to quickly locate aspecific key 32 and to insure that the proper key 32 is being sold orproper replacement key is being cut. This reduces errors in sales andwaste due to miscuts. In the case of replacement keys, it is importantto be able to quickly identify the location of the proper key blank 32,which matches the original key to be copied. A reader can read the RFIDtags on the retail floor and retrieve the location of the specific blankthat matches the original key provided by a customer. This eliminatesthe need for employees to manually search the inventory and can eveneliminate the need for the employee to determine which blank isappropriate. A general inventory reading of products on the retail floorcan be taken and compared to sales records and warn of theft problems orimproper shelving of keys. In addition, the key cutter itself may bedesigned to receive instructions based on information on an RFID tag 32and to set itself up to receive the selected key blank in order toeliminate miscuts resulting from improper key cutter set up.

The maintenance of real time or near real time inventory informationconstitutes another application of RFID technology that is valuablethroughout the key industry supply chain 10. It is desirable for allpartners in the supply chain—manufacturers 12, carriers 14, 18,distributors 20, suppliers 20, and retailers 22—to be able to quicklyobtain and share inventory information with one another. It is highlybeneficial for one partner to know the quantity of product currently inthe possession of another partner. For example, a manufacturer canadjust its output by knowing the amount of keys that are currentlyinventoried at the distributor, or a supplier can prepare shipments orinitiate additional orders bases on the number of keys the retailer hasin inventory. One method of obtaining this information is for themanufacturer or supplier to proactively count the inventory downstream.This can be accomplished by initiating readers located at the downstreamlocations. These readers can be configured to accept remote commands viathe internet or a dedicated network connection. This enables amanufacturer to send a command, through the internet or dedicatednetwork connection, to a reader that is located in the supplier'swarehouse. The reader can then read all the RFID tags 30 in thewarehouse and relay, though the internet or dedicated networkconnection, the number of a particular key type located in thewarehouse. This allows the manufacturer to obtain instant informationwithout having to rely upon responses from the supplier. This samemethod can be used by the supplier to determine when a retailer needs anew shipment of keys. The same method can be used to determine theupstream supply. It is useful for a retailer to determine if thesupplier has sufficient inventory to fulfill the retailer's needs. Ifthe retailer finds a lack of goods to fulfill its needs, it can eitherinform the supplier that more product is needed or search othersuppliers' inventories to fulfill the need.

The end user 24 of a key 32 may also derives benefit from theapplication of RFID tags 30 on keys 32. As seen above, when the end user24 returns to the retailer to duplicate a key 32, the RFID tag 30 can beused to greatly reduce the chances that a miscut will not occur, whichfrees the end user 24 of the frustration and waste of time caused bymiscuts. In addition, the RFID tag 24 can be configured to containadditional memory for use as mobile data storage by the end user 24. Anend user 24 may use the key 32 to hold retrievable data, such asautomobile warranty information or dealer maintenance records on aautomobile key that would convenience the user and save time.

Security information can also be written onto the tag 30 on a key 32,such as the end user's 24 name or a personal identification number(“PIN”). This information can be used to insure that unauthorized copiesof the key 32 are not made. A service location or retailer of blank keys32 that duplicates keys may review the security information, such as theowner's name, and cross check that against picture ID provided by theend user 24, to insure that the owner of the key is the one requesting aduplicate key. For an added layer of security or to preserve the owner'sanonymity, a duplicate would only be made if a proper PIN number wasprovided by the customer, which matched the pin number stored on theRFID tag 30 on the key 32.

It should also be clear from this disclosure that the present inventionhas numerous additional uses than solely for the key industry and keysupply chain 10. The present invention is equally applicable to otherapplications wherein the tracking of inventory of a multitude of likebut not identical products through manufacturing, distribution andretailing in a merchandising rack that both stores and displays providesutility via improved business efficiencies.

1. An automated inventory control system comprising: a merchandisingrack for displaying one or more products, wherein the merchandising rackis located at a retail outlet store; an electronic identification devicesecured to one or more products displayed on the merchandising rack; anelectronic reading device associated with the merchandising rack; theelectronic reading device configured to automatically scan all of theone or more electronic identification devices and determine data relatedto the products displayed on the merchandising rack, without the needfor a manual initiation of a scan for each of the one or more electronicidentification devices; a host computing device having a processer inelectronic communication with the electronic reading device; a receiverand a transmitter; the host computing device configured to receiveinstructions to initiate a scan from the receiver, initiate the scan by,and receive the data from, the electronic reading device and to transmitthe data through the transmitter to a computer under the control of adistributor, supplier or manufacturer.
 2. The automated inventorycontrol system of claim 1 wherein the scanning is initiated from acomputer under the control of a distributor, supplier or a manufacturer.3. The automated inventory control system of claim 1 wherein theelectronic identification device comprises a radio frequencyidentification device.
 4. The automated inventory control system ofclaim 2 wherein the electronic reading device comprises a radiofrequency identification device reader.
 5. The automated inventorycontrol system of claim 1 wherein the one or more products comprise oneor more key blanks.
 6. The automated inventory control system of claim 1wherein the merchandising rack comprises one or more spindles forholding the one or more products.
 7. The automated inventory controlsystem of claim 1 wherein the data related to the products includes aquantity of products.
 8. The automated inventory control system of claim1 wherein the data related to the products includes a type of product.9. The automated inventory control system of claim 1 wherein the datarelated to the products is transmitted over the world wide web.
 10. Theautomated inventory control system of claim 1 wherein the host computingdevice is configured to alert a user that a product is placed in thewrong spot on the merchandising rack.
 11. An automated merchandisingrack comprising: a plurality of spaces for displaying one or moreproducts; a radio frequency identification reader associated with themerchandising rack configured to read a plurality of radio frequencyidentification devices when one or more products having radio frequencyidentification devices are on the merchandising rack, without the needfor a manual initiation of a scan for each of the one or more electronicidentification devices; a host computing processor in electroniccommunication with the radio frequency identification reader forinitiating a scan of the one or more electronic identification devicesand for obtaining data from the one or more radio frequencyidentification devices; a receiving device in electrical communicationwith the host computing processor for receiving instructions from aremote source to initiate a scan; a transmitting device in electricalcommunication with the host computing processor for transmitting thedata from the host computing processor to a computer located at a sitethat is remote from the merchandising rack.
 12. The merchandising rackof claim 11 wherein the instructions to initiate a scan are provided bya computer on behalf of a distributor, supplier, or manufacturer. 13.The merchandising rack of claim 11 further comprising one or morespindles located on the merchandizing rack.
 14. The merchandising rackof claim 11 wherein the one or more products comprise key blanks. 15.The merchandising rack of claim 11 wherein the receiving device andtransmitting device transmit and receive data over the world wide web.16. The merchandising rack of claim 11 wherein data comprises a productquantity.
 17. An automated method of controlling inventory comprising:providing a merchandising rack at a retail outlet site; providing aradio frequency identification device reader associated with themerchandising rack; providing one or more products having one or moreradio frequency identification devices secured thereto; initiating ascan of the one or more radio frequency identification devices with theradio frequency identification device reader to obtain data relating tothe quantity of products on the merchandising rack from a computingdevice located at a site remote from the retail outlet site; andproviding instructions to one of a distributor, a supplier, ormanufacture to deliver additional products to the retail outlet.
 18. Themethod of controlling inventory of claim 17 wherein the product is oneor more key blanks.
 19. The method of controlling inventory of claim 17further comprising determining whether a user puts a product in anincorrect place on the merchandising rack.
 20. The method of controllinginventory of claim 17 wherein initiating the scan of the one or moreradio identification devices is initiated by a distributor, supplier ormanufacturer.